Rosenblatt Did Not See Any Surprise From Seagate, Western Digital - Read Why - Seagate Tech Hldgs (NASDAQ:STX), Western Digital (NASDAQ:WDC)

Rosenblatt did not expect any surprises from Seagate Technology Holdings PLC STX and Western Digital Corp WDC pre-announcing their March quarter results.
The June quarter outlook is a different story.
Continued COVID-related shutdowns in China may further delay security system deployments that use HDD storage.
June quarter HDD revenue could have some upside if the companies re-purpose manufacturing capacity from this market to mass storage.
Meanwhile, the NAND flash market's production issues may have created shortages in 2QC22, followed by oversupply in 2HC22.
Therefore, it continued recommending the HDD pureplay, STX, for its stable business model, high dividend, and valuation.
Rosenblatt remained skeptical of the NAND Flash market, particularly considering the increased capacity in 2HC22.
Rosenblatt maintained its Buy rating for STX and Neutral rating for WDC.
Wells Fargo had also slashed the price targets of the companies. Susquehanna downgraded the stocks.
Price Action: WDC shares traded higher by 1.59% at $50.29 on the last check Thursday. STX traded lower by 1.43% at $84.50.